A Supply Chain System: the InterBulk Approach - some practical insights & case studies from InterBulk s Asian customers Shanghai 21 June 2012 Mike Wright Business Development Manager Asia page 0
Contents Why the InterBulk approach? How do InterBulk do it? > Transportation services > Product Handling solutions > Supply Chain Management Case Studies Asia page 1
Glossary of Terms InterBulk Group PLC Global logistics company providing innovative supply chain and product handling solutions via intermodal transportation concepts Intermodal Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (rail, ship, and truck), without any handling of the freight itself when changing modes. page 2
Growing importance of logistics - due to a changing balance of costs Unit costs cost of making things cost of moving things Time Bigger, more powerful customers will demand more from their suppliers page 3
Criteria for supply chains favours intermodal logistics service (flexible) sustainable costs cash Shippers want to create more environmentally conscious supply chains page 4
Container traffic volumes doubled in last 10 years world container traffic (mio TEU) page 5
Contents Why the InterBulk approach? How do InterBulk do it? > Transportation Solutions > Product Handling Solutions > Supply Chain Management Case Studies Asia page 6
Creating competitive advantage Customer Service Technical services Intermodal Transportation Services On site logistics / terminals Supply Chain management Transport partnerships Information Technology Liners Fleet Management page 7
Flexible supply chain design Transport from origin Terminals Transport to receiver IBG Bulk containers 20/30/40 ft Bulk box Storage in containers SDU Delivery Shipping Line containers warehousing packed truck 20/40 ft packed blow into silo silo truck 20 ft bulk tipped into 30 ft 30 ft bulk storage in 20ft 20 ft bulk IBG Core Activity Sinotrans Core Activity page 8
InterBulk s integrated dry bulk intermodal solution Fully integrated silo to silo dry bulk transportation logistics solutions Management of entire supply chain & logistics solution on behalf of customer Provision of 20 / 30 / 40ft specialist bulk containers Provision of one-trip polyethylene liners Provision of strategic container storage & inventory management services Provision of 20 / 30 / 40ft specialist self-discharging tipping trailers page 9
Clear tendency towards shipments in bulk FROM From pallets & bags to liners Less labour intensive Fewer handlings Reduced damage/contamination Environment friendly No packaging regulations Efficient storage / inventory control TO Cost savings possible with bulk via increased payloads, packaging savings, less handling, admin reduction, etc. page 10
Our Supply Chain Management approach Transport single services many logistics service providers local product movement A B (shipments) traditional distances supplier status SCM integrated solutions one stop - shopping global product, cash, information complete solutions (flows) innovation distances and lead-times partner status cost / price value page 11
Freight management: co-operation with customer Rate negotiations and carrier selection Order booking Freight and lead-time tables per lane Rate and flow optimization Service Level Agreements and back-up rules Invoicing and payment Performance reviews with selected carriers Reporting Alternative set-ups are possible depending on customer needs Above set up proves to work due to clear responsibilities Supplier contracted by AkzoNobel and/or Interbulk page 12
Our fully integrated IT systems are customisable B2B order receipt Container terminal management Time & event driven messaging Business objects crystal reports T Integrated accounts W M S Stock balance enquiry M S page 13
Why the InterBulk approach? How do InterBulk do it? > Transportation Solutions > Product Handling Solutions > Supply Chain Management Case Studies Asian customers page 14
Background 20ft intermodal First major polyolefin manufacturer in SE Asia Production capacity: 1,000kt pa Located in Singapore Manufacturer looking to implement best practise distribution in 2002 Major BOPP film receivers not wanting to handle bags InterBulk introduce 20ft intermodal BiB concept International distribution + Load & Hold services commence page 15
Flowchart Singapore > Indonesia Liner Fitting Bulk loading Container shipped / railed Fully integrated silo to silo dry bulk transportation service One stop shop with 1 invoice for entire supply chain Container stored Liner Disposal Container discharged Container delivered Container collected page 16
Liner & bulkhead installation page 17
Container discharging via provision of fully equipped specialist self discharging tipping trailers by InterBulk product in air in Rotary Valve air & product to silo page 18
Discharging shipping line containers Compressor Pack SDU: all equipment required for discharge fitted on tipping trailer page 19
Delivering 20ft Bulk Containers page 20
Background 30ft intermodal Largest polypropylene manufacturer in SE Asia Polypropylene production capacity: 750kt pa Located in Thailand Manufacturer announces plant expansion in 2009 Construct a silo farm (with top loading capability) InterBulk introduce 20ft Top Loading BiB concept Domestic distribution + Load & Hold services commence 30ft BiB concept introduced May 2012 page 21
Silo Farm Constructed page 22
InterBulk 20ft Bulk Containers page 23
Container Loading 20 minutes page 24
Holding 20ft Bulk containers at INB Terminal page 25
30ft Bulk Containers page 26
Background 40ft intermodal silo containers Largest polyvinyl chloride (PVC) manufacturer in Indonesia Domestic distribution issues Manufacturer delivering significant monthly volume Receiver wanting to expand production but space limitations Construction of silos freed up space needed for warehousing InterBulk introduce 40ft silo container delivery concept Daily deliveries, all in bulk, Just in Time basis page 27
PVC Experience - discharging 13 Oct 08
Background 20ft intermodal ISO Veyors Cement manufacturer Located in Malaysia Manufacturer targeting cement exports to Singapore market Commences deliveries using cement trucks o 1000 KM round trip Significant issues experienced o Long delivery lead time o Trucks delayed at border InterBulk introduces 20ft ISO Veyor intermodal solution page 29
20ft ISO Veyor page 30
ISO Veyor Loading Malaysia page 31
ISO Veyor Discharging Singapore page 32
Customer Benefits gained why introduce bulk? Cost effective form of transportation Eliminates double handling, reduces product contamination Safe, sustainable and environmentally-friendly form of transport Direct delivery into the silo offers a commercial advantage Creates customer retention for clients via the integrated supply chain Allows flexibility for client customers delivery requirements InterBulk focuses on the logistics: clients concentrate on core activities page 33
Summary - InterBulk s dry bulk capabilities Capability Terminals Innovation Reputation Partnerships Supply chain management expertise Proven intermodal delivery services 20/30/40 ft discharge equipment Access to large dry bulk container fleet Presence China + Global reach On site logistics, strategic product storage Transhipment centres Solution fits need & requirement Self Discharge Trailers (SDUs) Liners, ISO Veyors, ISO Silos Industry leading in QHSSE Strong strategic links to customers Global operational flexibility Experienced logistics professionals around the world to make it happen page 34
Thanks for your attention! www.interbulkgroup.com page 35